Swedish court nixes BP, Rosneft Arctic tie-up: report

24th March 2011, Comments 0 comments

A Stockholm court has ruled against British energy giant BP's tie-up with Russia's Rosneft to jointly explore for oil in the Arctic, BP officials said Thursday.

The British firm immediately issued a statement stating that it "remains committed to partner with Russia" and would seek other ways of completing the historic deal.

January's agreement gave Rosneft five percent of BP's ordinary voting shares in exchange for approximately 9.5 percent of the Russian company's stock.

BP and Rosneft also agreed to explore and develop Rosneft's three licensed blocks on the Arctic continental shelf -- a 125,000 square kilometre (50 square mile) region said to contain five billion tonnes of oil and 3.0 trillion cubic metres of gas.

But its implementation has been blocked by the courts amid arguments by BP's Russian joint venture TNK-BP that the tie-up violated the smaller company's shareholders agreement.

© 2011 AFP

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